Investor Presentation – 1H FY202026 February 2020
About Lycopodium
Investor Presentation – 1H FY2020
The Company is headquartered in Perth, Western Australia and is listed on the Australian Stock Exchange (ASX: LYL).
Lycopodium is an innovative and value driven process, engineering and project delivery group.
Corporate Overview
Investor Presentation – 1H FY2020
Share Price(as at 25.2.20)
$6.00Shares on Issue
39.7mBruno Ruggiero
Executive DirectorMichael (Mick) Caratti
ChairmanPeter De Leo
Managing DirectorPeter Dawson
Executive Director
Market Capitalisation
~$238.2m
Lawrence (Laurie) MarshallNon-Executive Director
Steven ChadwickNon-Executive Director
Rodney (Rod) LeonardNon-Executive Director
Robert (Bob) OsmettiNon-Executive Director
Cash at Bank(as at 31.12.19)
$112.8mJustine Campbell
Chief Financial Officer
Core Capabilities
Investor Presentation – 1H FY2020
Sectors Services
Resources Infrastructure Process Industries
• Gold and Precious Metals
• Base Metals
• Battery Metals
• Specialty Metals
• Diamonds and Gemstones
• Bulk Minerals
₋ Iron Ore
₋ Minerals Sands
₋ Bauxite
• Railways
• Roads
• Ports
• Non-process Resource Infrastructure
• Asset Management
• Pharmaceuticals
• Biotechnology
• Chemical and Energy
• Food and Beverage
• Manufacturing
• Research and Development
• Feasibility Studies
• Process Development and Optimisation
• Engineering and Design
• Project Management and Delivery
• Project Services
• Construction Management
• Commissioning and Operations Support
• Asset Management
Locations
Investor Presentation – 1H FY2020
TorontoCA
Cape TownSA
ManilaPH
PerthAUS
MelbourneAUS
BrisbaneAUS
NewcastleAUS
JohannesburgSA
1H FY2020 Highlights
Investor Presentation – 1H FY2020
StrongBalance Sheet
EBITDA
$16.4m
Earningsper Share
22.6 cents
Fully FrankedDividend
15 cents
NPAT
$8.9mRevenue
$110.3m
• Continuing to develop EPC capability – in delivery of Perseus’ Yaouré Project and West African Resources’ Sanbrado Project.
• Development of a Corporate Shared Services model to standardise processes and operating platforms across the company – scope to initially include Finance, HR, Travel, IT, Legal, Marketing & Communications and Corporate Development (implementation anticipated by July 1 2020).
• Development and implementation of a People Strategy and People Plan – focused on strategic leadership and succession planning; upskilling; global mobility and talent management; client-centred design and delivery; and knowledge management.
• Above two initiatives will support improved organisational connectedness to drive greater collaboration across the company, globally.
Operational
1H FY2020 Revenue by Sector
Investor Presentation – 1H FY2020
Dec 19 Dec 18
Sector A$’000 A$’000
Resources 99.3 63.9
Infrastructure 8.3 6.3
Process Industries 2.6 2.9
110.3 73.1
2%8%
90%
December 19
87%
9%4%December 18
1H FY2020 Revenue by Geography
Investor Presentation – 1H FY2020
Dec 19 Dec 18
Geography* A$’000 A$’000
Australia 18.1 14.7
Africa 87.3 42.6
Americas 1.6 5.5
Other 3.3 10.2
110.3 73.1
3%1%
79%
December 19
8%
14%
December 18
17%
58%
20%
* By project location
1H FY2020 Balance Sheet
Investor Presentation – 1H FY2020
Dec 19 June 19
A$’000 A$’000
Current Assets 179.4 102.8
Total Assets 204.8 119.8
Total Liabilities 122.2 40.4
Equity 82.6 79.4
Cash on hand of
$112.8mas at 31 Dec 2019
Net TangibleAssets per Share
168.0 cents
Operating Cashflow
$77.6m
Balance Sheet provides capacity
for investment
Investor Presentation – 1H FY2020
Major Projects
Western Turner Syncline Phase 2
Investor Presentation – 1H FY2020
Sector Resources
Client Rio Tinto
Location Pilbara, Western Australia
Commodity Iron Ore
Scope
• Engineering, design, procurement and construction of the mineral processing facilities and associated non-process infrastructure
• Awarded and delivered via Mondium
Processing Capacity
36 Mtpa
Yaouré
Investor Presentation – 1H FY2020
Sector Resources
Client Perseus
Location Côte d’Ivoire
Commodity Gold
Scope• Engineering, procurement and
construction (EPC) services
Processing Capacity
3.0 Mtpa
Boto
Investor Presentation – 1H FY2020
Sector Resources
Client IAMGOLD Corporation
Location Senegal
Commodity Gold
Scope• Engineering and procurement
(EP) services
Processing Capacity
3.0 Mtpa
Sanbrado
Investor Presentation – 1H FY2020
Sector Resources
Client West African Resources
Location Burkina Faso
Commodity Gold
Scope• Full Engineering, Procurement
and Construction Management (EPCM) services
Processing Capacity
2.0 to 2.7 Mtpa
Cobré Panama
Investor Presentation – 1H FY2020
Sector Resources
Client First Quantum Minerals
Location Panama
Commodity Copper, gold, molybdenum
Scope
• Process plant design• Services to non-process
infrastructure buildings• Field engineering• Plant commissioning support
Processing Capacity
85 Mtpa
Bonasika
Investor Presentation – 1H FY2020
Sector Resources
Client Guyana Industrial Minerals
Location Guyana
Commodity Bauxite
Scope• Detailed engineering• Technical procurement support
Processing Capacity
350 Ktpa
Montepuez Ruby Mines
Investor Presentation – 1H FY2020
Sector Resources
Client Gemfields
Location Mozambique
Commodity Gemstones
Scope
• Installation and commissioning of the Recovery Plant
• Designed to incorporate UV-sorting technology
Feasibility Studies
Investor Presentation – 1H FY2020
Sector – Resources
Project Client Location Commodity Comments
Motheo Sandfire Resources
Botswana Copper Optimised Feasibility Study (OFS) and commencement of front-end engineering design (FEED)
Toliara Base Resources Madagascar Mineral sands In conjunction with Mineral Technologies
Bomboré Orezone Gold Corporation
Burkina Faso Gold Commenced FEED for oxide phase
Infrastructure Projects
Investor Presentation – 1H FY2020
Sector – Infrastructure
Project Client Location Scope
Botany Rail Duplication Project ARTC NSW Services survey and investigation
Inland Rail S2P ARTC NSW Design services
Lochinvar Train Support Facility ARTC NSW Concept track design
Maryvale Crossing Loop John Holland Rail (CRN) NSW Design services
LiDAR Level Crossing Assessments John Holland Rail (CRN) NSW Data assessment
Pipers Flat Rail Coal Unloader Project Energy Australia NSW Specialist studies
Drayton Spur Malabar Coal NSW Reconditioning and re-railing
Muswellbrook Bridge Replacement Cardno NSW Rail systems design early works
Rail inspections for various clients, including Pacific National, BHPB and Southern Ports Authority
Process Industries Projects
Investor Presentation – 1H FY2020
Sector – Process Industries
Project Client Location Scope
AEIP Energy Assessments
Department of Jobs, Precincts, Regions (DJPR)
Victoria Renewable energy and energy efficiency reviews for opportunity identification and CCE as independent assessment of Government funding projects
Hydrogen Liquefaction & Loading Terminal
Icon/Kawasaki Victoria Project management, quality documentation and mechanical installation of unit operations
MCT & MEX Hutches (AustralianSynchrotron) ANSTO
Caratelli (France) Victoria Project management, design support and installation of new hutches
Subsidiaries
Investor Presentation – 1H FY2020
• Incorporated joint venture with Monadelphous, providing engineering, procurement and construction (EPC) services to the minerals processing sector.
• Recently awarded major contract by Rio Tinto, valued at approximately $400 million, for the design and construction of the Western Turner Syncline Phase 2 (WTS2) mineral processing facilities and associated infrastructure in the Pilbara.
• Work on this significant project has commenced, and is expected to be completed during 2021.
Mondium
• Wholly owned subsidiary of Lycopodium Limited.
• Expert team of metallurgists and process engineers offering expertise in a wide range of commodities including gold, copper, nickel, iron ore, uranium, manganese, lead/zinc and mineral sands.
• Key services include:₋ Metallurgical testwork specification and supervision
₋ Flowsheet modelling, major equipment selection and design
₋ Process engineering design for new and upgrade projects
₋ Studies
₋ Plant optimisation
₋ Plant commissioning
₋ Remote optimisation and consulting
Orway Mineral Consultants (OMC)
Subsidiaries (continued)
Investor Presentation – 1H FY2020
• Joint venture between Lycopodium subsidiary company Orway Mineral Consultants (OMC) and Process IQ Pty Ltd.
• Formed to deliver a remote optimisation consulting service – MillROC (Milling Remote Optimisation Consulting) – to the minerals processing industry.
• The JV draws on OMC’s expertise in comminution design, modelling and optimisation and Process IQ’s expertise in the IIoT (Industrial Internet of Things) cloud-based computing, process control, automation and instrumentation.
• Orway IQ is at the forefront of minerals process optimisation globally, with experts providing remote optimisation consultingservices on live data to support mines to increase throughput, recovery, power efficiency and reduced liner wear.
Orway IQ
Investor Presentation – 1H FY2020
Strategy and Outlook
• Strong pipeline of projects and key identified prospects, including new projects and sustaining capital works.
• Continue to develop project pipeline with a suitable balance of EPCM and EPC contracted work.
• Further establish Mondium as a leading EPC contractor.
• Further geographical expansion – pursue opportunities in large markets where we are under-represented.
• Leverage expertise and experience for greater return –reward for the risk we manage.
• Create an exciting people experience to attract, engage, inspire and retain a high performing, global, professional workforce.
• Capture, retain and transfer knowledge and drive innovation – strategically leverage knowledge base for the development of our people and to drive continuous improvement.
Investor Presentation – 1H FY2020
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